Yesterday, P2P-lender TrustBuddy reported a convincing set of Q1 2014 results. Net revenues amounted to SEK 28.1m which is an increase of 52% compared with the same period one year ago. The total number of loans increased by 88% y-o-y and the total amount lent was SEK 189.7 during the quarter, up 57% y-o-y.
Says CEO Jens Glaso: “Growth in net revenue was 43% compared with Q4 and 52% compared to Q1 2013. The increase occured despite a deliberately cautious start in several of our markets in which we have chosen to introduce and test our new routines and models for credit assessments. In the latter part of the quarter, TrustBuddy was demonstrating an amazing potential when having access to the capital required for lending and when we were able to fully activate our marketing strategy…
In Q1, focus and resources have been directed to the development of the new IT platform that is expected to launch in mid-June, along with a brand new website. The new platform will put TrustBuddy another step ahead of the competition in its segment, facilitating a high degree of automation for payments and credit assessments…
The future looks bright on all of our active markets. Our assessment is that growth will continue at a high rate in respect of number of loans and the number of registered customers, both on the borrower and lender side. We intend to continue our expansion as planned and establish operations in new countries and markets in the upcoming quarters.”
TrustBuddy also confirmed its outlook for 2014, saying that it estimates the market for P2P lending will continue growing strongly in 2014. It is expected that the American player, Lending Club, will conduct an IPO in 2014. The introduction is expected to help create greater global interest and focus on the P2P industry, both from borrowers and from new lenders who want a more attractive alternative to conventional bank interest.
TrustBuddy expects an increased focus from major global investors wanting to take ownership stakes in the P2P industry 2014. It is the company’s assessment that the increased interest benefits the industry as a whole as it provides liquidity and prospects for continues growth for both TrustBuddy and other major global P2P players.
TrustBuddy intends to continue its expansion into new markets during 2014. During the first two quarters of 2014, the company’s focus will be on enhancing the product offering, operations and profitability for its customers and for itself. The clear trend of increasing volumes is expected to continue in 2014, resulting in significant increase in lending volume.